Woofun AI reports that the Hashdex Bitcoin ETF (DEFI) has entered liquidation, a strategic retreat contrasting sharply with the $143.6 million inflows recorded by competitor IBIT. The asset manager announced the closure on Aug. 3, marking the end of the fund's viability in a crowded market.

Trading on NYSE Arca concluded on Aug. 17, coinciding with the halt of creation orders. Hashdex cited a confluence of operational factors, including insufficient trading liquidity, high operating costs, and limited investor interest, as primary drivers for the decision. Investors holding DEFI shares past this date will receive cash distributions based on net asset value, rather than retaining exchange-traded liquidity. The final payout amount is not fixed at the July 30 snapshot; it will be adjusted for closing costs, transaction fees, and Bitcoin price movements during the wind-down. Consequently, the sponsor projects a distribution timeline targeting late August, with Aug. 28 serving as the expected shareholder-facing date rather than a guaranteed deadline.

Woofun AI data shows the fund held approximately $14.7 million in assets under management as of July 30. This figure represents the total capital base of the Hashdex Commodities Trust, of which DEFI was the sole series. The liquidation process effectively dissolves this specific vehicle, separating it from the broader Hashdex product suite.

This termination is distinct from the Hashdex Nasdaq CME Crypto Index ETF (NCIQ), which remains active. Hashdex continues to manage more than $200 million across other products available to U.S. investors, indicating that the DEFI closure reflects specific product-market fit issues rather than a systemic firm-wide crisis.